Typhoon winds and rain, the first anniversary of Lehman Brothers’ demise and the cancellation of the usually lavish end-of-conference party, failed to dampen the tough talk over regulation, banking co-operation and innovation in Hong Kong at the annual Sibos event last week.

The conference and exhibition, which was last year overshadowed by news of Lehman’s collapse, marked the gathering of the biggest hitters in the financial industry – from investment banks, stock exchanges, regulators, custodians, asset managers, clearing houses and technology firms.

Despite the subdued mood, speakers did not hold back in attacking the banking industry.

Ronnie Chan, chairman of Hang Lung Properties, called for the separation of commercial and investment banking, saying that he did not “know of any other industry that has as many conflicts of interest”.

He rejected the view of Peter Sands, chief executive at Standard Chartered Bank, that the financial system was now sufficiently healthy to leave intensive care. “I don’t think it has even gone to see the doctor yet,” Chan said.

Joseph Yam, chief executive of the Hong Kong Monetary Authority, said there was a conflict between the short-term private interest of financial intermediaries and long-term public interests. Ever greater profits and bonuses “suggest greater intermediation spreads and therefore a reduction in financial efficiency”, he said.

A common theme throughout the five-day conference was difficulties involved in unwinding state intervention in the sector, the effects of a tougher regulatory regime, and the threat of government protectionism of domestic business undermining the global economy’s recovery from recession.